Retail industry

Treasury sinks plans for new aircraft carriers

Article Abstract:

The UK Defence Secretary's plans for two new super- aircraft carriers costing GB 8bn contained in his strategic defence review is being stopped by the Treasury. The Chancellor of the Exchequer is looking for cuts to the GB 22bn defence budget to pay for health and education and is therefore unwilling to allocate budget to this proposal. The Treasury is looking at all plans contained in the strategic defence review hoping to obtain budget cuts totalling GB 1bn. The Defence Secretary has only offered cuts of GB 500mn. The Treasury is demanding the MoD sell surplus land and property. All the services will be forced to make cuts in certain areas to fund improvements elsewhere.

UK: BAE SYSTEMS FEAR OVER MOD CONTRACT

Article Abstract:

BAe Systems expressed concern on 9 March 2000 over a UK Ministry of Defence (MoD) contract covering the provision of half a dozen roll-on/roll-off ferries. The GB[pound] 1bn contract is the first covering Royal Navy equipment to come under the aegis of the UK government's Private Finance Initiative (PFI). BAe has established the Sealion consortium to vie for the contract, saying that winning it would safeguard 1,000 jobs at its Govan shipyard along with another 1,000 jobs in support industries. BAe is vying with two bidders from outside the UK and a fellow UK bid rival, which would also go overseas to build the ships.

UK: MOVE TO DIVIDE UP SHIPYARD CONTRACT

Article Abstract:

A GB[pound] 1bn contract to provide the Royal Navy with half a dozen roll-off roll-on ferries may be split between Glasgow's erstwhile Kvaerner Govan shipyard and a yard in Germany. The German consortium's bid is lower than that from BAe Systems' Govan yard, making it difficult for the UK government to award the contract to the latter. However, Govan may build one of the vessels at least in a move which would safeguard 10,000 jobs within the Scottish shipbuilding industry.